Risk Management Overview
Abstract
Projects are part of a dynamic and fast changeling world. Therefore there are a degree of uncertainty and unpredictability in projects. In-order to minimize uncertainties and unforeseeable events related to the project, risk are identified and managed throughout the project life cycle, Rumsfeld's Unknown-Knowns and Risk categorization (mitigate, control, monitor).
Risk management is impotent tool to use in project management, even-though the Risk management is only estimates of potential future situations. Risk identification help the manager get an overview of potential obstacles that can occur or prevent the team from achieving their goals. By identifying the risks, managers can map them and initiate appropriate measurements to counter them. Risk management is highly impotent discipline and is therefore present in most projects. [1]
The Risk Management Process is a continuous process, which can be divided in to divided in to five steps steps [1] [2]
The risks are identified and managed by using quantitative & qualitative tools. This Wiki-article will focus on Risk categorization, Risk Matrix, actions to take against identified risks and Rumsfeld's Unknown-Knowns. Furthermore describing inherent and residual risks, and parameters which a company can use to measure impact. At last limitations and advantages of Risk Management will be discussed. Furthermore this article will give a brief overview of other relevant reading material.
Please note that this article only covers the risk (threat) management of a project and does not look in to opportunities management (risks with positive effect).
Test [3] [4] [1] [5] [6] [7] [8] [9] [10] [2]
Further Reading Material
Risk Management in Renewable Energy Projects
Risk and Opportunities Management
References
- ↑ 1.0 1.1 1.2 ISO, "31000 Risk management — Principles and guidelines", INTERNATIONAL STANDARD, (2009):.
- ↑ 2.0 2.1 Georgetown University, "RISK MANAGEMENT OVERVIEW", https://riskmanagement.georgetown.edu/overview, Visited 10-02-2018
- ↑ H. Pearson, "Project Management", Pearson Education Limited, 4th. Edition (2010):.
- ↑ ISO, "31000 Risk Management for smes", ISO, (2015):. https://www.iso.org/iso/iso_31000_for_smes.pdf, Visited 07-02-2018
- ↑ CGE Academy, "Risk matrices", https://www.cgerisk.com/knowledgebase/Risk_matrices, Visited 05-02-2018
- ↑ Nasdaq, "ASSESSING RISKS: INHERENT OR RESIDUAL", http://www.bwise.com/blog/assessing-risks-inherent-or-residual/obj5382859, Visited 08-02-2018
- ↑ Wikipedia, "There are known knowns", https://en.wikipedia.org/wiki/There_are_known_knowns, Visited 03-02-2018
- ↑ J. Geraldi, C. Thuesen and J. Oehmen, "How to Do Projects", Dansk Standard, (2017):.
- ↑ Chartered Accountants, "Treat Risks", https://survey.charteredaccountantsanz.com/risk_management/midsize-firms/treat.aspx, Visited 09-02-2018
- ↑ D. Hillson, "Effective Opportunity Management for Projects: Exploiting Positive Risk", Taylor & Francis, (2003):.
